The Dow, which had slid as much as 77 points in the morning trading, closed down 11.11 points, or 0.1%, to 10,426.31.  The broader S&P 500 index slipped 0.52, or 0.1%, to 1,109.80, while the Nasdaq, hurt by the weakness in tech shares, fell 10.64, or 0.5%, to 2,193.14.  Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.37% from 3.33% late Tuesday.  Crude prices advanced 44 cents to settle at $79.58 per barrel.  Volume remained light, with only 1.063 billion shares trading on the NYSE, and declining issues ahead of advancers by an 8 to 7 margin.

Technology shares were under pressure after Autodesk Inc. (NASDAQ:ADSK) and Salesforce.com (NYSE:CRM) gave grim forecasts and BMO Capital Markets noted Research in Motion (NASDAQ:RIMM), the maker of Blackberry phones, faces increased pressure as consumers opt for cheaper phones.  However, shares in Sprint Nextel(NYSE:S) continued their forward run, jumping 6.7% after the previous session's 13% surge, on reports the company had paid off $1 billion in debt.

A weak housing report fuelled recovery concerns but shares in the sector managed to move higher after Citigroup (NYSE:C) raised Pulte Homes (NYSE:PHM) to “buy," saying the shares are "undeservedly out of favor." Citigroup raised its price target on the firm to to $12 from $11.  DR Horton (NYSE:DHI) rose 1.9% and Ryland (NYSE:RYL) advanced 0.8%, while Toll Brothers (NYSE:TOL) fell 0.9%. 

Financials also helped stem the retreat as hedge fund operator John Paulson noted in a quarterly post to shareholders that Bank of America shares will reach $29.81 by the end of 2011.

Seven of the ten S&P500 industry sectors moved lower Wednesday.  Tech shares slipped 0.6%, followed by 0.5% declines in basic materials, industrials, and utilities, 0.4% drops in oil and gas, 0.2% retreat in consumer services, and a 0.01% fall in consumer goods.  Stemming the retreat in the sector were financials, up 0.8%, and telecommunications, up 0.2%.  In a quarterly post to shareholders, hedge fund operator John Paulson said he expects Bank of America (NYSE:BAC) shares to double over the next few years.

• Saks (NYSE:SKS) reported a surprise quarterly profit

• Microsoft (NASDAQ:MSFT) shares rose 3.0%, and led the gainers on the DJIA, after Morgan Stanley (NYSE:MS) and UBS (NYSE:UBS) recommended the shares.  Morgan Stanley's analyst raised the price target on the stock due to encouraging demand for Windows 7 and upbeat expectations for holiday season demand.  UBS' analyst placed a $34 price target on the shares

• Barclays Capital (NYSE:BCS) raised ExxonMobil (NYSE:XOM) to "overweight"

• Autodesk (NASDAQ:ADSK) offered a slightly downside fourth-quarter guidance of 24 cents a share ex-items

• Salesforce.com (NYSE:CRM) said it sees fourth-quarter earnings of 14 cents to 15 cents a share, versus Street estimates of 15 cents a share

• BMO Capital downgraded Research in Motion (NASDAQ:RIMM) to "market perform" from "outperform," cutting the price target to $64 from $100

• A counter-offer to Kraft's (NYSE:KFT) hostile, $16 billion Cadbury (NYSE:CBY) offer may be in the works from Hershey (NYSE:HSY) and Ferrero

Chicago, IL – November 17, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dell Inc. (DELL), Apple Inc. (AAPL), Nokia (NOK), Research In Motion (RIMM) and American Dairy Inc. (ADY).

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Here are highlights from Monday’s Analyst Blog:

Dell’s Smartphone Strategy

Dell Inc. (DELL), one of the world’s leading computer manufacturer, has decided to start manufacturing its smartphone device. The company has zeroed in on Brazil as the first manufacturing destination and chosen Claro as its carrier partner in the region. Dell will also be manufacturing the device in China and partner with China Mobile in that region. The phone will be using the Google Android operating system.

Dell’s entry into the smartphone segment looks like a logical progression, as the company is already manufacturing and rolling out reasonably priced netbooks in the market. However, Dell is a late entrant into the market, unlike its peer Apple Inc. (AAPL), which has already grabbed a large share through smartphones such as iPhone 3G and iPhone 3GS.

As per the technology research firm Canalys, third quarter 2009 worldwide smartphone shipments grew 4% year on year, to 41.4 million units. As per the findings of the research firm, Nokia (NOK) maintained its worldwide smartphone leadership position with a 40% share of the market, up from its year-ago position, but down 5% from the previous quarter. Research In Motion (RIMM) was in second place, with a market share of 21%, almost flat sequentially. Apple’s market share was 18% in the third quarter, up from the 14% it held in the second quarter, with significant improvement in the iPhone 3GS supply across many countries. HTC retained the fourth position with a 5% share.

There is no reason to think that Dell phones would not gain popularity considering the company’s history of innovation, although the success rate could vary as competition is intense. We believe that even if Dell is able to capture a small share of the smartphone market, the additional growth opportunity would be substantial.

American Dairy Beats Expectations

American Dairy Inc. (ADY) reported third quarter results before the opening bell today. The company’s net income from continuing operations stood at $11.1 million, or 52 cents per share, from a loss of $22.1 million, or $1.19 per share in the year-ago quarter. Quarterly earnings also surpassed the Zacks Consensus Estimate for a profit of 31 cents per share.

American Dairy is a leading producer and distributor of premium infant formula, milk powder, and soybean, rice and walnut products in China. The company, which operates through its wholly owned subsidiary Feihe Dairy and other subsidiaries, has 200 milk collection stations, 2 dairy farms and 6 production facilities. The company has capacity to produce approximately 1,220 tons of milk powder per day and a distribution network of over 90,000 retail outlets across China.

The Beijing-based company recorded an impressive 94.1% year-over-year growth in quarterly sales to $72.1 million. The expansion was primarily driven by strong demand for American Dairy’s milk powder products (mainly infant formula products), which recorded a 151.7% growth in volumes to 6,561 tons and contributed 77.5% to total sales. Moreover, the robust revenue performance was also helped by company’s augmented distribution network and efforts to expand into new geographic areas in China.

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As per the technology research firm Canalys, third quarter 2009 worldwide smartphone shipments grew 4% year on year, to 41.4 million units.  As per the findings of the research firm, Nokia (NOK) maintained its worldwide smartphone leadership position with a 40% share of the market, up from its year-ago position, but down 5% from the previous quarter. Research In Motion (RIMM) was in second place, with a market share of 21%, almost flat sequentially.  Apple’s market share was 18% in the third quarter, up from the 14% it held in the second quarter, with significant improvement in the iPhone 3GS supply across many countries. HTC retained the fourth position with a 5% share.

There is no reason to think that Dell phones would not gain popularity considering the company’s history of innovation, although the success rate could vary as competition is intense. We believe that even if Dell is able to capture a small share of the smartphone market, the additional growth opportunity would be substantial. The technology research firm, iSuppli has projected that global smartphone shipments are expected to rise to 235.6 million units in 2010, an increase of 27.9% from 184.2 million units in 2009. So we believe that Dell has properly timed its smartphone entry, sensing the substantial growth opportunity that this segment offers. The company has the requisite financial strength and technical expertise to make a mark in this segment.

Chicago, IL – November 13, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), Nokia (NOK), Research In Motion (RIMM), Motorola (MOT) and Palm (PALM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Apple Beats Nokia in Smartphones

According to a recent Strategy Analytics research report, Apple Inc. (AAPL) surpassed Nokia (NOK) by generating the highest total operating profit in the industry for the third quarter of 2009. The research firm estimated Apple's operating profit for iPhone handset units to be $1.6 billion, compared to Nokia's (the number 1 handset maker) just $1.1 billion, beating the latter for the first time.

Apple entered the mobile phone market with its iPhone in 2007. The company has experienced tremendous growth since then, driven by the success of its iPhone. This has resulted in Apple becoming one of the most profitable in the industry. Apple is running the highest margin phone business and thus has undergone a total turnaround from a loss of $0.07 per share in 2001 to a profit of $6.29 per share in fiscal year 2009.

Apple has sold over 20 million iPhone units in fiscal 2009, a 78.3% increase from 2008. This strong unit growth contributed $6.7 billion in total revenues in 2009, an increase of 266.3% from 2008.

According to an IDC study, Apple’s smartphone market share of 17.1% in the third quarter of 2009 was lower than Nokia’s market share of 37.9%. Apple sold a meager 7.4 million iPhones for $4.5 billion in revenues, compared to Nokia’s 108.5 million handsets sold for $10.36 billion in revenues in the same period.

Despite holding a lower total market share and much lower number of units sold in the quarter, Apple’s operating profit surpassed that of Nokia due to higher prices and lower costs. Apple has been experiencing tremendous growth due to the success of the iPhone, as customer satisfaction remains the highest in the industry.

While, Apple is strongest at the high-end of the market, Nokia has a global reach and delivers a wider range of handsets targeting both low and the high-end consumers. The market for high-end players can slow more dramatically, while lower price point players may continue to grow, which can hurt Apple.

To attract customers, Apple recently reduced the price of its current generation 8GB iPhone 3G by $100 to $99. Thus, the attractive price point drove volume and generated significant amounts of deferred revenue.

However, Apple is facing an increasingly tough competition from Research In Motion (RIMM), Motorola (MOT) and Palm (PALM) in the smartphone market, who are offering new touch screen devices.

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Top-line Hit by Lower Roaming Revenue

The Chicago-based carrier reported operating revenue of $1,058 million, down 3% from $1,092 million a year ago. This decline is attributable to lower service revenue, which decreased 3% year over year to $984.9 million due to a 26% year over year reduction in inbound roaming revenues, primarily resulting from Verizon's (VZ) acquisition of Alltel.

Decline in roaming revenue was offset by healthy data revenue, which grew 34% over the prior-year quarter to $174.3 million, accounting for 18% of service revenue. Reported ARPU (average revenue per user) of $47.02 reflects a year over year improvement.

Subscriber Losses Continues

U.S. Cellular was hit by weak economic conditions in its service territories and intense competition, as it lost 24,000 customers during the quarter. That brought the total subscriber base to 6.13 million. U.S. Cellular is being challenged by the increasingly competitive domestic wireless market. Competition has increased after the launch of exclusive premium wireless handsets by the top-tier carriers such Verizon and AT&T (T).

The company registered a net loss of 14,000 retail prepaid customer in the quarter, compared to a net loss of 15,000 customers in the prior-year quarter. However, decline in the prepaid segment was partly offset by a net gain of 8,000 subscribers in the postpaid segment. Postpaid customers accounted for 96% of the total retail customers. Postpaid churn increased year over year to 1.7% and remained stable sequentially.

Financial Condition

U.S. Cellular generated cash flow from operating activities of $637.7 million and spent $357.8 million in capital expenditures during the first nine months of 2009, resulting in a free cash flow of approximately $280 million. U.S. Cellular exited the quarter with $404.9 million in cash and cash equivalents and approximately $1 billion in total debt.

Outlook

The company has confirmed its guidance for 2009. Service revenue is projected in the range of $3.9 billion to $3.95 billion. Operating income is forecasted at $300-$375 million. U.S. Cellular continues to expect depreciation, amortization and accretion to be approximately $600 million. The capital expenditure target remains at $575 million. Based on uncertain economic conditions, U.S. Cellular withdrew its net subscriber addition target for the year.

In order to drive wireless growth, U.S. Cellular is expanding its 3G wireless broadband network (based on EV-DO technology) coverage, as it achieved 75% penetration of the postpaid customer base at the end of the third quarter. The company plans to upgrade more than 60% of its total cell sites with 3G EV-DO by the end of 2009, a significant increase from approximately 23% coverage achieved in 2008.

To further drive data revenue, U.S. Cellular is expanding its smartphone portfolio with premium handset offerings, as it recently launched Research In Motion's (RIMM) latest CDMA smartphone, BlackBerry Tour 9630. This has enabled the company to join the league of Tier-1 carriers in offering top-notch cellular handsets.

However, U.S. Cellular's aggressive 3G roll-out plans through 2009 could strain finances if capital expenditures are required beyond management's expectations. Moreover, a decline in roaming revenues, along with subscriber retention problems, suggests a less optimistic outlook for the remainder of 2009.

Cisco Systems’ (NASDAQ:CSCO) CEO John Chambers said he now sees a global economic recovery, fueling a rebound in the company’s sales this quarter.  The Dow average jumped 203 points, or 2%, while the tech-heavy NASDAQ, riding high on Cisco’s forecast, bolted up 50 points or about 2.4%. 

All ten S&P 500 industry groups ended in the green, with banking shares advancing 2.6% as analyst Dick Bove of Rochdale Securities noted the group will double by the end of 2010.  Technology shares advanced 2.2%.  Qualcomm Inc. (NASDAQ:QCOM) jumped 5.4% to $43.85 and Microchip Technology Inc. (NASDAQ:MCHP) gained 3.9% to $25.37 after it was raised to “buy" from “neutral" at FTN Equity Capital Markets.  Research in Motion (NASDAQ:RIMM) jumped on news of its $1.2 billion share buyback plan as well as a Standard & Poor's ratings increase to "buy" from "hold."  A report on the semiconductor industry projected sales growth of 10% in 2010.

On the retail sales front, action was largely mixed.  About half of firms that reported numbers missed expectations as the growth proved selective. Costco (NASDAQ:COST) posted 3% same-store-sales gains excluding gasoline results; Gap (NYSE:GPS) registered a 4% sales growth and raised its third quarter guidance.  Luxury retailers Nordstrom (NYSE:JWN) showed surprising gains with its 6.5% sales increase.

On the political front, President Obama is expected to sign into law today an extension and broadening of the homebuyers' tax credits, to include both first-time buyers' credits of $8,000, and existing homeowners, in residence for over five years, of $6,500.  The measure also includes an extension of unemployment benefits by up to twenty weeks.

Chicago, IL – October 21, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), China Unicom (CHU), Nokia (NOK), Research In Motion (RIMM) and Palm Inc. (PALM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s AnalystBlog:

Apple: 2nd Highest Growth Ever

Apple Inc. (AAPL) released Snow Leopard, the latest upgrade to the Apple Mac operating system in the quarter. In addition, Apple announced new upgrades to its iTunes and the iPod digital media players at a media event in Sep. The company plans to release iPhones in China via China Unicom (CHU) and entered into a three-year agreement to sell the iPhone 3G and 3GS in the country. We continue to believe that Apple will outperform its peers, given its strong iPhone sales and new product launches.

For the first quarter of fiscal 2010, Apple expects revenue in the range of $11.3 billion to $11.6 billion. EPS is expected to be in the range of $1.70 to $1.78. While this is below the Zacks Consensus Estimate of $1.92, the company traditionally gives extremely conservative guidance.

Apple posted impressive results in the quarter, fueled by strong Mac and iPhone sales. The company has undergone a total turnaround from a loss of 7 cents per share in 2001 to a profit of $6.29 per share in fiscal year 2009. Apple reported strong 2009 results with increased revenue and earnings growth despite the recession, while its rivals Nokia (NOK), Research In Motion (RIMM) and Palm Inc. (PALM) are still struggling to recover from the recession’s impact on consumer spending.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
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Chicago, IL – October 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), Microsoft (MSFT), Hewlett-Packard (HPQ), Research In Motion (RIMM) and Palm (PALM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Raising Price Target on Apple

Apple Inc. (AAPL) sold 5.2 million iPhones in the June quarter, representing a 626.0% unit growth over the year-ago quarter. In the current quarter the company released Snow Leopard, the latest upgrade to Apple's OS X operating system. In addition, Apple announced new upgrades to its iPod digital media players. We continue to believe that Apple will outperform its peers given its strong iPhone sales and new product launches.

The company is currently benefiting from a positive mix shift to the higher-margin iPhones and iPod business from its traditional MP3 players, as a result of which management posted non-GAAP gross margin of 41.3% in the last quarter. We expect the company to post higher margins as a result of higher sales and the continued mix shift in the next several quarters.

However, Apple faces significant competition in all areas of its business from Microsoft (MSFT), Hewlett-Packard (HPQ), Research In Motion (RIMM) and Palm (PALM).

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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• Citigroup (NYSE:C) reported a 27 cent per share loss for the quarter, inline with Zacks estimates, on revenues of $20.4 billion

• Baxter International (NYSE:BAX) reported third quarter earnings of 98 cents a share, one cent above Zacks estimates, on revenues of $3.15 billion

• Research in Motion (NASDAQ:RIMM) is due to launch its new version of a touchscreen Blackberry, the Storm2 today

• Singapore's Oversea-Chinese Banking Group agreed to pay ING Group (NYSE:ING) $1.46 billion for its private banking operations in Asia

• According to Gartner data Acer overtook Dell (NASDAQ:DELL) as the number 2 PC computer brand by market share, with 15.4% of the global market, versus Dell's 12.8% and Hewlett-Packard's (NYSE:HPQ) 20%

• Anheuser-Busch InBev (NYSE:BUD) passed its $7 billion divestment goal to help repay its $52 billion Anheuser-Busch takeover, agreeing to sell breweries to CVC Capital Partners for an initial $2.23 billion

• Google (NASDAQ:GOOG) announced plans to launch an online bookstore in 2010

Chicago, IL – October 15, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nokia Corp. (NOK), Best Buy Co. Inc. (BBY), AT&T (T), Research In Motion (RIMM) and Apple Inc. (AAPL).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Nokia Enters Netbook Market

Nokia Corp. (NOK) yesterday announced its sales and distribution plan for its first netbook called “Booklet 3G". The U.S. retailer Best Buy Co. Inc. (BBY) will sell this netbook (mini laptop) for $299.99 together with AT&T’s (T) 3G data plan of $60 per month for a two-year contract. Also, a carrier-free unsubsidized option will be available for a price of $599. Booklet 3G will be available from mid-November.

Diversification outside the mobile phone market becomes essential for Nokia. In recent times, the company has lost some ground due to fierce competition. According to Gartner Inc, Nokia’s share has fallen to 45% in the second quarter from 47.5% in the year-ago quarter. Meanwhile, market share of Research In Motion (RIMM) increased to 18.7% from 17.3% in the year-ago quarter and that of Apple Inc. (AAPL) soared to 13.3% from a mere 2.8% in the prior-year quarter.

A business venture in the consumer PC/laptop market is a logical move on the part of Nokia towards the broader mobile computing market. The company is the global leader in the ordinary mobile phone market and has significantly penetrated the high-end smart-phone market. Last July, Nokia had unveiled a new handheld converged mobile computing device Called “N900" on Linux-based Maeme 5 software.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Contact:
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Web Content Editor
312-265-9380
Visit: www.zacks.com

Chicago, IL – October 12, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dell Inc. (DELL), Google (GOOG), AT&T (T), Apple Inc. (AAPL) and Research In Motion (RIMM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Dell to Try Smartphone

Dell Inc. (DELL) is planning to enter the smartphone business. The renowned personal computer (PC) manufacturer is planning to launch a smartphone, which will run on Google’s (GOOG) Android mobile software and will be connected through telecom giant AT&T’s (T) network. We believe that Dell is following the footprint of another computer maker, Apple Inc. (AAPL), whose flagship smartphone iPhone generated substantial business for the company.

Currently the smartphone market is dominated by players like Apple and Research In Motion (RIMM). Both handset and PC-makers have understood the business potential of the smartphone and Dell is also in the process of grabbing its share. Rumor has it that Dell could launch the phone as soon as early 2010.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Unfortunately, a large amount of good news has already been priced into PALM. In fact, today's rise reflects unwarranted optimism, not an improvement in the company's business.

PALM has a negative book value of $740 million, meaning its liabilities far exceed its assets. The company continues to burn cash and lose money. (Hence, the need for a secondary offering.)

As far as the new operating system, current forecasts don't suggest enough phones will be sold to support the current price. The Zacks Consensus Estimate calls for PALM to post a 37-cent loss in fiscal 2010. If we look out to fiscal 2011, analysts think the company could earn 57 cents per share. However, forecasts for both fiscal years have recently been cut.

And even if we assume the fiscal 2011 forecast is correct, PALM trades at a premium. The P/E of 30 is higher than what Apple (AAPL), Research in Motion (RIMM) or Nokia trade at. Considering that these 3 are more fundamentally-sound companies that have shown an ability to sustain profitability, why would someone pay a premium for a company that lacks an adequate cash balance?

Don't get me wrong, I like the new webOS. I personally own a Pre and want to see PALM survive. However, I'm also very cognizant that there is a big difference between a good product and good stock. And the fundamentals show that PALM is not a good stock.

Chicago, IL – September 21, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes AutoZone (AZO), Bed, Bath & Beyond (BBBY), General Mills (GIS), KB Home (KBH), Lennar (LEN), Paychex (PAYX), CarMax (KMX), Research in Motion (RIMM) and Texas Industries (TXI). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.

This Week's Events

We will get another look at initial third-quarter results with 11 S&P 500 companies reporting. Included in this group are AutoZone (AZO), Bed, Bath & Beyond (BBBY), General Mills (GIS), KB Home (KBH), Lennar (LEN) and Paychex (PAYX). A total of 33 companies are on the calendar.

The Fed will hold a 2-day meeting starting on Tuesday. No change in rates is expected at either this or the November meeting. Traders will be looking for insight about the pace of recovery and updates on the various bailout programs.

In addition to the Fed meeting, the economic calendar features August Leading Indicators and home sales data.

• Monday: August Leading Indicators
• Tuesday: Federal Housing Finance Agency (FHFA) House Price Index
• Wednesday: FOMC rate decision (about 2:10 pm), weekly crude inventories, weekly mortgage applications
• Thursday: August existing home sales, weekly initial jobless claims, weekly natural gas inventories
• Friday: August new home sales, August durable good orders, revised August University of Michigan consumer confidence

The Chicago Fed will host an international banking conference in Chicago. Speaking at the event will be White House economics advisor Christina Romer (Thursday) and Fed Reserve Board Governor Kevin Warsh (Friday).

Another big round of treasury auctions is slated. During a 3-day span, starting on Tuesday, the Treasury Department will offer $43 billion in 2-year notes, $40 billion in 5-year notes and $29 billion in 7-year bonds. Recent auctions have been heavily oversubscribed.

Though old adage of "buy Rosh Hashanah, Sell Yom Kippur" has not really worked in investors' favor, the bulls continue to remain in control. Therefore, it seems likely that we will hit Dow 10,000 this week. Investors should be aware, however, that this is a fear and greed market run by fast money.

To our Jewish readers, L'Shana Tova.

Companies That Could Issue Positive Earnings Surprises

As I write this, shares of Bed Bath & Beyond (BBBY) are trading higher in response to raised fiscal second-quarter estimates from one brokerage analyst. The change has yet to be factored into the Zacks Consensus Estimate, which currently stands at 47 cents per share. The most accurate estimate is slightly higher at 48 cents per share. The home goods retailer has topped expectations for 2 consecutive quarters and could be a beneficiary of the rebound in housing. Bed, Bath & Beyond is scheduled to report on Wednesday, Sep 23, after the close of trading.

Though used cars did not qualify for the Cash for Clunkers rebates, optimism about CarMax's (KMX) second-quarter results has been growing. During the past few weeks, 4 brokerage analysts have raised their profit projections. The revisions have pushed the Zacks Consensus Estimate 2 cents higher to 18 cents per share. The most accurate estimate is slightly more bullish at 19 cents per share. KMX beat expectations over the past 2 quarters after previously missing twice. CarMax is scheduled to report on Tuesday, Sep 22, before the start of trading.

Though KB Home (KBH) is projected to have lost 68 cents per share, the actual fiscal third-quarter loss could be less than most analysts forecast. The most accurate estimate is far more bullish, calling for a loss of 61 cents per share, and the homebuilder has topped expectations for 2 consecutive quarters. KB Home is scheduled to report on Friday, Sep 25, before the start of trading.

Research in Motion (RIMM) has topped expectations for 3 consecutive quarters. Ahead of the company's fiscal second-quarter report, 3 analysts have raised their projections. The changes were not significant enough to move the Zacks Consensus Estimate from its current level of $1 per share, though the most accurate estimate is a penny higher, at $1.01 per share. Research in Motion is scheduled to report on Thursday, Sep 24, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Texas Industries (TXI) has missed expectations during 3 out of the last 4 quarters. Shareholders should brace themselves for another disappointment with 3 of the 8 covering analysts cutting their fiscal first-quarter estimates within the past few weeks. The revisions have caused the Zacks Consensus Estimate to drop 7 cents to a projected loss of 5 cents per share. Texas Industries is scheduled to report on Thursday, Sep 24, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5614.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=5615.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

The Fed will hold a 2-day meeting starting on Tuesday. No change in rates is expected at either this or the November meeting. Traders will be looking for insight about the pace of recovery and updates on the various bailout programs.

In addition to the Fed meeting, the economic calendar features August Leading Indicators and home sales data.

• Monday: August Leading Indicators
• Tuesday: Federal Housing Finance Agency (FHFA) House Price Index
• Wednesday: FOMC rate decision (about 2:10 pm), weekly crude inventories, weekly mortgage applications
• Thursday: August existing home sales, weekly initial jobless claims, weekly natural gas inventories
• Friday: August new home sales, August durable good orders, revised August University of Michigan consumer confidence

The Chicago Fed will host an international banking conference in Chicago. Speaking at the event will be White House economics advisor Christina Romer (Thursday) and Fed Reserve Board Governor Kevin Warsh (Friday).

Another big round of treasury auctions is slated. During a 3-day span, starting on Tuesday, the Treasury Department will offer $43 billion in 2-year notes, $40 billion in 5-year notes and $29 billion in 7-year bonds. Recent auctions have been heavily oversubscribed.

Though old adage of "buy Rosh Hashanah, Sell Yom Kippur" has not really worked in investors' favor, the bulls continue to remain in control. Therefore, it seems likely that we will hit Dow 10,000 this week. Investors should be aware, however, that this is a fear and greed market run by fast money.

To our Jewish readers, L'Shana Tova.

Companies That Could Issue Positive Earnings Surprises

As I write this, shares of Bed Bath & Beyond (BBBY) are trading higher in response to raised fiscal second-quarter estimates from one brokerage analyst. The change has yet to be factored into the Zacks Consensus Estimate, which currently stands at 47 cents per share. The most accurate estimate is slightly higher at 48 cents per share. The home goods retailer has topped expectations for 2 consecutive quarters and could be a beneficiary of the rebound in housing. Bed, Bath & Beyond is scheduled to report on Wednesday, Sep 23, after the close of trading.

Though used cars did not qualify for the Cash for Clunkers rebates, optimism about CarMax's (KMX) second-quarter results has been growing. During the past few weeks, 4 brokerage analysts have raised their profit projections. The revisions have pushed the Zacks Consensus Estimate 2 cents higher to 18 cents per share. The most accurate estimate is slightly more bullish at 19 cents per share. KMX beat expectations over the past 2 quarters after previously missing twice. CarMax is scheduled to report on Tuesday, Sep 22, before the start of trading.

Though KB Home (KBH) is projected to have lost 68 cents per share, the actual fiscal third-quarter loss could be less than most analysts forecast. The most accurate estimate is far more bullish, calling for a loss of 61 cents per share, and the homebuilder has topped expectations for 2 consecutive quarters. KB Home is scheduled to report on Friday, Sep 25, before the start of trading.

Research in Motion (RIMM) has topped expectations for 3 consecutive quarters. Ahead of the company's fiscal second-quarter report, 3 analysts have raised their projections. The changes were not significant enough to move the Zacks Consensus Estimate from its current level of $1 per share, though the most accurate estimate is a penny higher, at $1.01 per share. Research in Motion is scheduled to report on Thursday, Sep 24, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Texas Industries (TXI) has missed expectations during 3 out of the last 4 quarters. Shareholders should brace themselves for another disappointment with 3 of the 8 covering analysts cutting their fiscal first-quarter estimates within the past few weeks. The revisions have caused the Zacks Consensus Estimate to drop 7 cents to a projected loss of 5 cents per share. Texas Industries is scheduled to report on Thursday, Sep 24, before the start of trading.

Charles Rotblut, CFA is the senior market analyst for Zacks.com.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Sep 21 - Sep 25. Prices are as of Thursday's, Sep 17, market close.

Company	Stock	Zacks Estimate	Year Ago EPS	Last Qtr Surprise	Date	Time	Price
Lennar Corp -A	LEN	($0.48)	($0.56)	80.7%	9/21	BTO	$16.60
Synnex Corp	SNX	$0.61	$0.66	18.8%	9/21	AMC	$31.81
Aar Corp	AIR	$0.25	$0.45	10.9%	9/22	AMC	$18.39
Carmax Gp (Cc)	KMX	$0.18	$0.06	175.0%	9/22	BTO	$18.79
Carnival Corp	CCL	$1.18	$1.65	13.8%	9/22	BTO	$32.86
Carnival Plc	CUK	$1.20	$1.65	60.0%	9/22	BTO	$34.08
Conagra Foods	CAG	$0.33	$0.27	0.0%	9/22	BTO	$22.15
Factset Resh	FDS	$0.73	$0.68	0.0%	9/22	BTO	$62.35
Finl Fed Corp	FIF	$0.37	$0.49	2.4%	9/22	AMC	$24.08
Fuller(Hb) Co	FUL	$0.36	$0.35	44.0%	9/22	AMC	$20.83
Progress Softwa	PRGS	$0.32	$0.30	0.0%	9/22	BTO	$23.05
Autozone Inc	AZO	$4.44	$3.88	9.7%	9/23	BTO	$147.37
Bed Bath&Beyond	BBBY	$0.47	$0.46	41.7%	9/23	AMC	$38.81
Cintas Corp	CTAS	$0.39	$0.51	5.6%	9/23	AMC	$29.46
Comtech Telecom	CMTL	$0.18	$0.61	31.8%	9/23	AMC	$34.50
Genl Mills	GIS	$1.03	$0.96	6.2%	9/23	BTO	$60.06
Paychex Inc	PAYX	$0.34	$0.41	(5.9%)	9/23	AMC	$29.74
Red Hat Inc	RHT	$0.11	$0.10	20.0%	9/23	AMC	$25.46
3Com Corp	COMS	$0.02	$0.09	150.0%	9/24	BTO	$4.71
Amer Greetings	AM	$0.06	$0.05	(65.0%)	9/24	BTO	$14.62
Analogic Corp	ALOG	$0.23	$0.55	(41.7%)	9/24	AMC	$37.76
Christopher&Bnk	CBK	($0.14)	$0.04	200.0%	9/24	AMC	$7.68
Finish Line-Cla	FINL	$0.21	$0.24	(999.0%)	9/24	AMC	$9.50
Mccormick & Co	MKC	$0.54	$0.50	2.4%	9/24	BTO	$33.87
Neogen Corp	NEOG	$0.26	$0.25	4.6%	9/24	BTO	$29.98
Research In Mot	RIMM	$1.00	$0.86	4.3%	9/24	AMC	$82.70
Rite Aid Corp	RAD	($0.15)	($0.27)	15.4%	9/24	BTO	$2.24
Saba Software	SABA	$0.01	($0.04)	66.7%	9/24	AMC	$4.12
Spectrum Contrl	SPEC	$0.18	$0.18	5.9%	9/24	AMC	$9.53
Steelcase Inc	SCS	$0.00	$0.28	114.3%	9/24	BTO	$7.11
Texas Inds	TXI	($0.05)	$0.28	(140.0%)	9/24	BTO	$44.95
Tibco Software	TIBX	$0.08	$0.09	28.6%	9/24	AMC	$9.13
Vail Resorts	MTN	($1.10)	($0.29)	8.39%	9/24	BTO	$34.19
KB Home	KBH	($0.68)	($1.87)	11.8%	9/25	BTO	$19.69

BTO = Before The Market Open, AMC = After The Market Close

Zacks Investment Research

• Sepracor (NASDAQ:SEPR) shares jumped 26.5% on reports that Japanese firm Dainippon has agreed to acquire the company in a $2.7 billion deal

• Credit Suisse raised its ratings on Research in Motion (NASDAQ:RIMM) and Motorola (NYSE:MOT), expecting benefits from the under-served corporate market, with both likely to benefit from cost cutting measures

• Some reports say AT&T (NYSE:T) is planning an offer to acquire Leap Wireless (NASDAQ:LEAP)

• Pfizer (NYSE:PFE) was ordered to pay a $2.3 billion civil settlement regarding its withdrawn pain medication Bextra and other drugs

• Hovnanian (NYSE:HOV) reported a wider-than-expected fiscal third quarter loss of $2.16 a share, versus Zacks estimates of a $1.60 per share loss as revenues of $387.1 million, were slightly above Zacks estimates of $385 million

• Ciena (NASDAQ:CIEN) reported a narrower than expected fiscal third quarter loss of five cents a share, versus Zacks estimates for a loss of 21 cents a share, on revenues of $164.8 million, compared with estimates of $152 million

Chicago, IL – September 3, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. (AAPL), Palm (PALM), Nokia (NOK), Motorola (MOT) and Research in Motion (RIMM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Apple's New iPod

Apple Inc. (AAPL) is expected to unveil a new line up of iPod portable music players for the holiday period when it will hold a special media event in San Francisco on Sept 9. Apple declined to name the products.

It is widely believed that Apple will use the event to announce major updates to the iPod Touch, the classic iPod and the iPod Nano. The upgrades could include adding a digital camera to the devices, while the iPod Touch could also be augmented with a video camera. No updates to iPod Shuffle are expected.

Apple is also expected to provide an update to the iTunes media management software at the event. Rumor has it that Steve Jobs may appear for the first time at the event after he returned to Apple from his temporary leave of absence.

Apple’s resurgence has been driven by the tremendous success of its iPod portable music and video players and iTunes online store. Apple unveiled the iPod nano in 2005, which was followed by the launch of iPod Touch in 2007. Apple’s iPod remains popular, as evident from the 6% increase in unit shipments to 54.8 million in fiscal 2008 compared to 2007.

However, growth in the digital music player market may slow down as the core market becomes saturated. Apple suffered declining year-over-year sales of its iPods in the first nine months of 2009 as demand fell due to global recession. The company could sell only 44.1 million iPods during the first nine months of 2009. iPod revenues were down 13.0%.

Apple faces significant competition from Palm (PALM), Nokia (NOK), Motorola (MOT) and Research in Motion (RIMM) in all areas of its business.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

A group of investors, with the largest being private equity firm Silver Lake, bought the 65% stake for $1.9 billion in cash and $1.25 million in short-term notes. eBay acquired Skype for a total of $3.1 billion in 2005 and subsequently wrote off $1.4 billion in 2007. The valuation indicates that the company made a profit on the deal. It also retained a share in future profits through its 35% stake and a seat on the Skype board.

Skype owns software that employs VoIP technology to offer users free voice and video calls, instant text messaging and file sharing. eBay’s former CEO had acquired the company to facilitate communication between buyers and sellers using its shopping portal. But the strategy failed to take off and the business was a constant distraction to management. The company had to part with $530 million in payment to Skype’s technology founders, Niklas Zennström and Janus Friis, and the ensuing legal battle prompted eBay to start developing a new technology to drive business.

The deal is also likely to be beneficial for Skype as it will improve its core technology. Since Silver Lake owns telecom equipment company Avaya, there could be significant synergies in offering. Skype has developed mobile applications for Apple’s (AAPL) iphone and Research In Motion’s (RIMM) Blackberry. It also agreed to embed its services on certain Nokia (NOK) handsets.

The key question today is whether eBay will offload PayPal that is currently hindered by the scope of the company’s sales. PayPal is a play in the growing ecommerce market and broadening its scope would be a key to future growth. eBay’s own user base could also be more satisfied, since it would not need to force the system on them.

Launched in November last year, Research In Motion’s first touch-screen mobile handset Storm aimed to counter the growing popularity of Apple Inc.’s (AAPL) iconic iPhone. The launch of Storm2 in September/October would cut the older version’s lifetime to less than a year, indicating cut-throat competition in the smart-phone industry.

This market is getting increasingly crowded with new players and should witness intense competition going forward. In addition to Research In Motion, Apple and Palm Inc. (PALM), Nokia Corp. (NOK) and Samsung have launched a series of novel products. Motorola (MOT), Google Inc. (GOOG), HTC and LG Electronics are other new entrants in the smartphone market.

BlackBerry Storm2 is expected to incorporate Wi-Fi technology, which was considered a downside of the original Storm. Storm2 would replace the existing “SurePress" tool with a new touch-screen technology called “TruePress", which will make typing on the device much easier. The new device is also likely to have a 5-megapixel camera. Research In Motion recently acquired Torch Mobile, a web-based software and application developer to strengthen the BlackBerry’s web-browsing facilities.

The smartphone mobile market is growing continuously. The next-generation technology of converged mobile computing enables a smartphone to function like a fully operational computing device. Research In Motion has been able to successfully differentiate its BlackBerry products from other products in the communications market. Demand has been overwhelming for its BlackBerry Bold, Storm, Pearl Flip 8230 and BlackBerry 8830 World editions. Newly launched BlackBerry Tour received encouraging market traction. We expect Storm2 to further boost the company’s top line growing forward.

Chicago, IL – August 31, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Garmin Ltd. (GRMN), AT&T (T), Apple (AAPL), Nokia (NOK) and Research In Motion (RIMM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Garmin Nuvifone Finds U.S. Carrier

A Garmin Ltd. (GRMN) spokesperson announced that the company had selected a carrier for the nuvifone G6, its new smartphone. Although the name of the carrier was not announced, rumor has it that it could be AT&T (T), the second-largest player in the U.S. The product will be manufactured by Taiwanese PC manufacturer Asustuk.

Garmin expects the product to generate $100-200 million in revenue this year, which would add an incremental 4% to the top line. This means that Garmin would still be short of the one million unit mark this year. Although the company’s small size and vulnerability in the intensely competitive market could delay initial customer response, Asus is geared to crossing the million unit threshold in 2010.

We believe that the success of the product could be tempered by AT&T’s commitment to Apple’s (AAPL) iPhone, for which it has exclusive distribution rights in the U.S.

Competition and market dynamics have been slowing down Garmin’s growth in the last two years. The company is one of the largest players in the personal navigation device (PND) market.

Management expected the PND market to gradually give way to GPS-enabled smartphones, as consumers continue to show a preference for an all-in-one device. The company decided to develop its own smartphones to protect the significant market share it has captured over the past few years.

Everything would have gone smoothly if the recession had not hit the economy so severely. As it happened, the automotive market (its largest segment) was severely impacted. Additionally, the company was forced to enter into relationships with recession-hit carriers that continue to show significant apathy to increased spending.

The nuvifone has had a stumbling start in the fiercely competitive Taiwanese market. After repeated postponement, the device finally started shipping, side by side with smart phones from Nokia (NOK), Research In Motion (RIMM), Apple and HTC.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

This 3G handset will have a high-resolution WVGA touch screen and incorporate a slide-out QWERTY keyboard. It will be available in select markets from October for 500 Euros.

Traditionally, all Nokia handsets have used the Symbian operating system, which is now fully controlled by Nokia. However, the Symbian system has lost charm for mobile phone users and become outdated compared to open source operating systems like Linux, Google Inc.’s (GOOG) Android and the licensed system of Microsoft Corp.’s (MSFT) Windows Mobile. A wireless handset based on the Maeme 5 operating system will allow users to run more than a dozen application windows at the same time.

N900 will have multitasking feature for applications together with web browsing (Mozilla-based Internet browser) that will support Adobe System Inc.’s (ADBE) flash software. This smart-phone will have ARM Cortex-A8 processor and 1GB of application memory. N900 also contains a 5-megapixel camera and 32GB of storage facility. Storage capacity will be expandable up to 48GB through a microSD memory card.

Nokia is the world leader in the high-end smartphone market but the company has been losing ground to fierce competition in recent times. According to Gartner Inc, Nokia’s share fell to 45% in the second quarter from 47.5% in the year-ago period. Meanwhile, Research In Motion (RIMM) grew its market share to 18.7% from 17.3% in the year-ago quarter and Apple Inc. (AAPL) gained 13.3% from a mere 2.8% in the prior-year quarter.

Nokia’s adoption of the Linux-based operating system is aimed to protect its leadership position in the smartphone market. Earlier this month, the company signed a deal with its former arch rival Microsoft Corp., to incorporate the mobile version of MS-Office software suite in Nokia handsets.

A credit spread consists of selling one option and buying another that is further out of the money. We sell closer to the stock price to bring in a larger premium than the cost on the bought leg. Generally credit spreads are done with options expiring within about 30 days. This provides us with the most rapid time decay, which is essentially how the spread profits. If we have a stock trading at $50, and we sell a 45 strike put, buy a 40 strike put for our spread, and the stock stays anywhere above $45, we will get to keep our credit.

Another appealing thing about credit spreads is that they are a high probability trade. High probability not only because most options expire worthless, but also because we don't need the stock to move directionally to profit. In fact, the stock can go against us some and we will still profit. A stock will either go up, go down or stay sideways. Most trading strategies will only profit from one of those potentials. Credit spreads make money in two and a half out of the three scenarios.

The risk in a credit spread is generally higher than the potential reward, which is backwards from what we normally look for. A common ratio would be reward of 1 to risk of 4. We will manage the trade so that if things go bad, we don't let the maximum loss happen.

One approach to managing the loss would be setting our exit if the trade goes against us, such that we have a loss of $1 per contract. This would mean that regardless of where the stock is, we exit if the cost to buy back the spread was one dollar above the credit amount we brought in.

Other loss exit strategies could be based on where the stock is trading rather than the value of the options. If the stock stays out of the money, our trade will be profitable at expiration. In fact, we would have the maximum profit in our trade at expiration if the stock ended out of the money. So, we might set an exit based on the stock crossing a threshold that would indicate it was more likely to be in the money. This threshold might be a support level on the stock just above the strike price we sold in our trade.

Let's look at an example of a bullish credit spread on Research In Motion (RIMM) from May 15, 2009. This is just an illustration and should not be construed as a recommendation of any kind.

The stock closed on 5/15 at $72.34. We entered this trade with out-of-the-money puts selling the 65 strike price. As long as the stock stays above 65 until expiration day in June, we get to keep all $1240. This means that we have some wiggle room if the stock goes down against us, as well as safety if the stock stays stagnant or goes up like we plan.

At expiration day in June, the stock closed at $72.78. The price at the beginning of the trade and end of the trade are very close...this stock did, in fact, move quite a bit during the life of the trade, rising significantly and then retracing...but it never got below $65. The close of the trade was simple, we let the options expire. Both legs were out of the money, and therefore expired worthless. No trade was needed to close the position. No commission costs, nada, nothing...they just evaporated. We got to keep the $1240 credit we received originally. So we made 100% of our potential profit.

Credit spreads require a margin requirement to be held by your broker in escrow until the position is closed. This margin requirement is equal to the difference between strike prices, minus any credit brought in, multiplied by the number of contracts traded. So in the above example, the requirement would be $3760 held aside ($5000 - $1240 = $3760). If we calculate the return as a percentage of the risk in the trade we find that we made 33% on our risk ($1240 credit/$3760 risk = 32.9%). The trade lasted 35 days, so we essentially made 1% per day that we were in the trade. Not a bad investment. We can't even get 5% per year at a bank right now.

Hopefully you can see the benefits of selling option premium, and also recognize that protecting yourself by doing a spread is a wise move. Credit spreads are a great income strategy that can provide a solid base for our options trading. Good luck!

You can learn more about different types of option strategies by downloading our free options booklet: 3 Smart Ways to Make Money with Options (Two of Which You Probably Never Heard About). Just click here.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Zacks Investment Research

Chicago, IL – August 26, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft (MSFT), Yahoo (YHOO), Google (GOOG), Nokia (NOK) and Research In Motion (RIMM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Microsoft Doing Everything Right

When I read the first article about the Microsoft (MSFT)/ Yahoo (YHOO) combo, I did not fully realize how it would change my search experience. But when I checked my Yahoo mail this morning, I was pleasantly surprised to see a Bing bar at the top. One of the things that crossed my mind was how could a regular Googler like me be enticed into using Bing?

It now appears that I have to do nothing, I just open a Yahoo finance/mail/or any other Yahoo page and there it is. But would I still continue using Google (GOOG)? I think not, especially if Google is not my home page and the content is more or less the same. This basically means that the focus has now shifted from use to content.

Microsoft has also introduced a freely downloadable version of MS Office, facilitating the use of the company’s word processing, spread sheet and PowerPoint products. Although Google already offers similar products, it was more of a defensive measure to protect the company’s market share.

The company recently signed an agreement with Nokia (NOK) to offer Word, Excel and PowerPoint features on select mobile phones from 2010. The revenue potential could be substantial, considering Nokia’s market share. While the deal should generate incremental earnings, many observers feel that it would mark the end of the Windows-based mobile operating system.

But Microsoft came up with yet another strategy to prove its adaptability to changing market dynamics. The company’s newly announced OneApp feature will use clouds to offer programs on GPRS phones in emerging markets. While smartphone penetration in these markets has been limited, feature phones have huge potential.

Microsoft has already entered into an agreement with South Africa’s Blue Label Telecoms, offering a dozen OneApp-powered applications. The initial package includes popular programs like Facebook, Twitter, Windows messenger and games. It would soon add other useful programs to enable bill payments and even health diagnosis.

The existing mobile operating systems from Research In Motion (RIMM) among others have made headway in the U.S. and other developed markets. Microsoft’s intention to target emerging markets makes sense to us.

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Chicago, IL – August 26, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Research In Motion (RIMM), Google (GOOG), Yahoo (YHOO), Apple Inc. (AAPL) and Palm Inc. (PALM).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

RIMM Bolsters Web Browser

Research In Motion (RIMM) yesterday announced that it acquired Torch Mobile, a web-based software and application developer. Torch Mobile uses the open-source web browser layout engine WebKit to develop web applications for mobile phones. The company’s flagship Iris Browser product is a web browser for mobile phones with a customizable interface and touch-screen control. Iris browser can be used on many devices and platforms. The browser contains software components for web services compatible with Google (GOOG) gadgets, Yahoo (YHOO) widgets, and several other web platforms.

RIMM has been able to successfully differentiate its BlackBerry products from other offerings in the communications market. BlackBerry smart-phones are admired globally for their best e-mail functionality. However, its web browsing capability is not as powerful as iPhone of Apple Inc. (AAPL), Pre of Palm Inc. (PALM) and Google Android. All of these browsers are based on the WebKit ecosystem. In order to remain competitive, RIMM has decided to strengthen its browser that will be able to support Flash and Silverlight Technologies.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
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312-265-9380
Visit: www.zacks.com

RIMM has been able to successfully differentiate its BlackBerry products from other offerings in the communications market. BlackBerry smart-phones are admired globally for their best e-mail functionality. However, its web browsing capability is not as powerful as iPhone of Apple Inc. (AAPL), Pre of Palm Inc. (PALM) and Google Android. All of these browsers are based on the WebKit ecosystem. In order to remain competitive, RIMM has decided to strengthen its browser that will be able to support Flash and Silverlight Technologies.

The smart-phone mobile market is growing continuously. As a result, this market is getting increasingly crowded with new players and is expected to witness intense competition going forward. In addition to RIMM, Apple, and Palm, Nokia Corp. (NOK), Sony-Ericsson, a joint-venture between Sony Corp. (SNE) and L.M. Ericsson (ERIC) and Samsung have launched a series of innovative products. Motorola (MOT), Google, HTC, and LG Electronics are other new entrants in this market.

The next-generation technology of converged mobile computing enables a smart-phone to function like a fully operational computing device with the help of a strong web browser. Consumers are increasingly using their mobile handset to browse the Internet. This creates a growing market for third party software. Acquisition of Torch Mobile will now give RIMM a solid foothold in the WebKit development community.

It now appears that I have to do nothing, I just open a Yahoo finance/mail/or any other Yahoo page and there it is. But would I still continue using Google (GOOG)? I think not, especially if Google is not my home page and the content is more or less the same. This basically means that the focus has now shifted from use to content.

Microsoft has also introduced a freely downloadable version of MS Office, facilitating the use of the company’s word processing, spread sheet and PowerPoint products. Although Google already offers similar products, it was more of a defensive measure to protect the company’s market share.

The company recently signed an agreement with Nokia (NOK) to offer Word, Excel and PowerPoint features on select mobile phones from 2010. The revenue potential could be substantial, considering Nokia’s market share. While the deal should generate incremental earnings, many observers feel that it would mark the end of the Windows-based mobile operating system.

But Microsoft came up with yet another strategy to prove its adaptability to changing market dynamics. The company’s newly announced OneApp feature will use clouds to offer programs on GPRS phones in emerging markets. While smartphone penetration in these markets has been limited, feature phones have huge potential.

Microsoft has already entered into an agreement with South Africa’s Blue Label Telecoms, offering a dozen OneApp-powered applications. The initial package includes popular programs like Facebook, Twitter, Windows messenger and games. It would soon add other useful programs to enable bill payments and even health diagnosis.

The existing mobile operating systems from Research In Motion (RIMM), Apple (AAPL), Google and Nokia have made headway in the U.S. and other developed markets. Microsoft’s intention to target emerging markets makes sense to us.

As Google’s Android-based phones are just making their appearance felt, the new Microsoft solution could divert some buyers. The deal with Nokia, which is firmly entrenched in these regions, would play a key role in bringing Microsoft applications a superior foothold. We believe that offering the smartphone experience to existing cell phones is a smart strategy, as users are allowed to continue using handsets of their choice.

This is not all. Management also expects to launch a windows mobile apps store for cell phone users by the end of this year. Apple’s app store is very popular, although the most frequently downloaded applications are the ones that cost 99 cents. Microsoft’s ploy is to allow developers to fix their own prices, encouraging them to continue writing programs for Win Mo. We are encouraged by the company’s recent initiatives as we believe these are likely to improve its competitive position in both the search and mobile markets.

• Apple (NASDAQ:AAPL) told US regulators that Google's (NASDAQ:GOOG) voice app was not approved for use on Apple's (NASDAQ:AAPL) iPhone because it interferes with "user experience"

• According to Nokia (NYSE:NOK) the firm expects to regain market share against Apple's (NASDAQ:AAPL) rival iPhone and Research in Motion's (NASDAQ:RIMM) Blackberry, mentioning a new device with a Linux operating system and a netbook product likely

• Southwest Airlines (NYSE:LUV) promised Wi-Fi in all of its planes by next year

The Dow Jones industrial average retreated 32 points, or 0.3%. The S&P 500 index fell 3 points, or 0.3%. The Nasdaq dipped 8 points, or 0.4%. On the New York Stock Exchange, 1.09 billion shares exchanged hands and losers were ahead of winners by a narrow margin.

The two-day Fed meet that begins today is expected to keep interest rates near close to zero.  However, Bernanke and Co’s assessment of how the economy is faring could be decisive and therefore its moves would be closely watched. 

Seven of the ten S&P500 industry groups ended in the red, led by declines in basic material shares (-1.7%), industrials (-0.9%), financials (-0.8%), and technology stocks (-0.6%).  Health care (+0.7%) and utilities (+0.3%) showed strength as investors snapped up defensive plays.  Material stocks declined as the US dollar gained against a basket of currencies.  Basic material shares fell due to a decline in commodities.  Alcoa (NYSE:AA) shares retreated 2.4% and Freeport-McMoRan Copper & Gold (NYSE:FCX) dropped 1.6%.  Retailers also headed lower in the face of upcoming earnings reports by the majors, including Abercrombie & Fitch (NYSE:ANF), JC Penney (NYSE:JCP), Macy's (NYSE:M), and Nordstrom (NYSE:JWN). However, yesterday McDonald's (NYSE:MCD) reported a stronger-than-expected 4.3% rise in July same-store sales, reflecting its appeal to the value-conscious consumer.

Analysts’ adjustments also reflected on some stocks yesterday.  Eli Lilly (NYSE:LLY) dropped 3% after Goldman Sachs (NYSE:GS) downgraded the stock to "sell" from "neutral" and added the company to its Conviction Sell list, citing its risk at having the industry's largest "patent cliff." Merck (NYSE:MRK), however, rose 1.7% after being reinstated with a "buy" rating at Goldman Sachs (NYSE:GS).   Merck was also added to Goldman Sachs’ (NYSE:GS) American Conviction buy list on its current valuation and product pipeline.  Best Buy (NYSE:BBY) fell 5.3% after Goldman Sachs (NYSE:GS) downgraded the stock to "neutral." Research in Motion (NASDAQ:RIMM) shares plunged 4.9% as the possibility of an iPhone launch at Verizon (NYSE:VZ) led analysts at UBS (NYSE:UBS) to downgrade the shares from "buy" to "neutral."  UBS (NYSE:UBS) lowered its rating on Yum Brands (NYSE:YUM) to "neutral" from “buy" on concerns about "sluggish" sales.

Tuesday will also see the first of the $75 billion in Treasury auctions scheduled for the week. $37 billion in 3-years is slated for today, with $23 billion scheduled tomorrow and $15 billion on Thursday. The sales are not expected to find a lack of buyers.

The main growth driver for Apple is its increased Mac shipments and higher iPhone sales. The company’s Macintosh product continues to gain market share, with significant gains in portables, music players and smartphones.

We believe the strong growth at Apple is primarily driven by increased revenue contribution from iPhone, which has exceeded our estimates. Meanwhile, strong revenue growth has also driven margins and resulted in significantly higher earnings.

However, the company provided a cautious revenue outlook for the upcoming quarter due to the global crisis followed by lower consumer spending. A weak MP3 market has also led to lower iPod sales. Although demand for traditional MP3 players could continue to decline, it should be offset by growth in more advanced units such as iPod Touch.

Apple faces significant competition in all areas of its business—PCs, MP3 players and cellular phones. Its Mac OS has a very small share of the personal computer market, which is dominated by Microsoft’s (MSFT) Windows and Hewlett-Packard’s (HPQ) HP UX.

Although the company is a market leader in the iPod line, it faces competition from Microsoft's Zune and Sandisk's (SNDK) Sansa player. Finally, in the cellular phones segment, Apple has a strong product in the iPhone but is pitted against Research In Motion’s (RIMM) Blackberry, Palm’s (PALM) Pre and Nokia (NOK).

We believe Apple is likely to gain some share in the enterprise market through its compelling products but remain on the sidelines due to the macro uncertainty, weak consumer spending and intense competition. We expect the company to trade at a significant premium to its peers.

We believe the positives for Apple are already priced into its shares, and therefore maintain our Neutral rating on the stock. Our six month target price is $175.

Actify is a Business-to-Business concept that will provide comprehensive bundled wireless activation solutions to Brightpoint's retail, enterprise, and on-line customers. With its activation services, the company manages and enables additional subscriptions for network operator partners, facilitating the process of activation in non-traditional channels, including contact centers.

Activation services is one of the three business lines of Brightpoint. Sales & Distribution and Logistic service are the other two segments. According to our view, consolidation of the Activation business becomes very critical for Brightpoint since the company's Sales & Distribution business, which generates more than 90% total revenue, suffered a severe set-back due to the ongoing global macro-economic downturn. The company's second-quarter 2009 revenue projection of $722 million - $727 million is significantly below our expectation of $770 million.

Actify supports its channel customers through automated carrier activation processes, subscription processing, e-business solutions, device distribution, commissions management, and merchandising options. Brightpoint provides wireless activation services to large carriers like AT&T (T), Verizon Wireless (VZ), Sprint-Nextel (S) and T-Mobile.

The company launched a program to provide call center customer support, emission management services, and activation services to Dell Inc. (DELL), Nokia Corp. (NOK) and Wyeth (WYE). We believe Actify will help Brightpoint to generate more business in future. The company has a solid clientele such as Research In Motion (RIMM), HTC Corp, Garmin Ltd. (GRMN) and ZTE, to name a few. We maintain Hold for Brightpoint.

The largest wireless carrier by subscriber has announced that the popular handset is now available for just $99.99 under a two-year service contract, making it more attractive to customers. The new price reflects a 50% discount on the original launch price of $200 for a new contract. 
 
BlackBerry Storm represents one of the 36 new devices Verizon offered during 2008. The handset was launched in November 2008 as the first all-touchscreen phone in the BlackBerry series.
 
Although the BlackBerry Storm was originally positioned as an alternative to Apple's (AAPL) iPhone, it failed to generate strong market appeal due to certain drawbacks. The most important of them is the lack of Wi-Fi (wireless broadband) support, which has so far prevented Verizon from effectively competing with iPhone 3G, marketed by its archrival AT&T (T) in the US.

Verizon sold 500,000 units of BlackBerry Storm in the first month after launch compared to 3 million units sold for iPhone 3G in the same time frame.
 
Verizon’s decision to offer hefty price discount comes as a response to AT&T’s recent aggressive move to reduce the price of the entry-level iPhone 3G to $99 from $199 for new two-year contracts. Additionally, AT&T commenced the nationwide roll-out of the new iPhone 3GS (an upgraded version of iPhone 3G) in June 2009, which offers superior features and functionality compared to iPhone 3G including faster processor speed, improved battery life and a better camera. 
 
Following the price cut on BlackBerry Storm, Verizon is on a level playing field, enabling it to compete more effectively with AT&T’s iPhone 3G. Moreover, this attractive deal also paves the way for the upcoming launch (expected in September 2009) of the more advanced BlackBerry Storm 2, which has been designed to address the shortcomings of its predecessor and will be positioned as a head-to-head competitor to iPhone 3GS.

However, it remains to be seen whether Verizon’s new approach effectively succeeds in driving sales in the highly competitive US smartphone market. That said, we maintain our Hold rating for Verizon.

We believe the global macro economic slowdown had a major impact on Brightpoint’s operational volume. Management has indicated that the company managed approximately 18 million-19 million mobile devices during the second quarter, which remains almost flat with respect to the previous quarter.

We expected around 22 million of wireless devices during the same quarter prompted by the solid global customer base of the company. Brightpoint has entered into agreements with large telecom carriers and handset makers, such as like Research In Motion (RIMM), HTC Corp, Garmin Ltd (GRMN), ZTE, Nokia (NOK), Verizon Wireless (VZ) and T-Mobile for the distribution of their handheld devices.
 
The second quarter 2009 preliminary financial estimate of Brightpoint, however, has some positive signs. Despite weak top-line, adjusted (non-GAAP) diluted EPS of $0.07-$0.13 is in line with our expectations. The acquisition of Dangaard Telecom has strengthened the company’s geographic presence, product offerings and margins. Starting in 2009, $25 million - $30 million of annual cost savings from this acquisition are forecasted by management.

Outstanding debt of approximately $95 million - $97 million is well below the company’s projection of daily average debt burden of $100 million - $150 million. This will reduce interest expenditure. Cash & cash equivalents of approximately $74 million - $76 million at the end of the same quarter is a considerable improvement over $54 million of cash at the end of the previous quarter.
 
Brightpoint has improved its market share in the emerging markets of Latin America, India and China. However, given the tepid outlook provided by various large wireless handset makers and industry research sources, we do not expect any improvement of the company’s top-line in 2009. We maintain our Hold recommendation for Brightpoint.

In spite of continuous business restructuring for the past year, the segment is being seriously challenged by devastating decline in sales volume since the beginning of fiscal 2008. During the first quarter of 2009, the company sold just 14.7 million units, down approximately 46% year-over-year and down 23.4% from previous quarter.

According to industry findings, Motorola now commands approximately 6% global market share for handsets, significantly behind Nokia (38%) (NOK), Samsung (18.8%), and LG (9.2%). None of its new launches products have favorable market traction as its iconic RAZR mobile phones had a few years ago.

Consumer preferences have shifted towards high-end feature-rich wireless PDA devices and smart-phones, which are gaining significant market acceptance. Unfortunately, Motorola’s PDA line lacks enthusiastic consumer appeal compared to Apple’s (AAPL) iPhone, Research in Motion’s (RIMM) Blackberry, Nokia’s N-series, or Palm’s Pre (PALM). This high-end segment is also crowding with other solution providers, including Google (GOOG), Samsung, and HTC vying for market share.

Enormous cash drain from the mobile handset division has pushed Motorola’s overall debt servicing outlook to negative. On February 3, Moody’s Investor Services downgraded Motorola’s broad credit rating to Baa3 from Baa2 and short-term rating to Prime-3 from Prime-2. Business restructuring is likely to result in higher cash drain due to severance payments and other charges. Motorola’s board of directors has also suspended dividend payments due to a weak cash position.

Motorola said it will launch a new 3G high-end smart-phone based on Google’s Android software during the fourth quarter. We are not convinced that a turnaround will take place without major structural revamps as the company is exposed to lingering economic headwinds, lower overall worldwide demand for mobile handsets and a lack of high-end competitive PDA wireless devices in its handset range. Thus, we maintain our Sell recommendation on Motorola.

Chicago, IL – July 9, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Research In Motion (RIMM), Apple (AAPL), Palm (PALM), GlaxoSmithKline Plc (GSK) and Merck (MRK).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Apple to Grab Smartphone Share

According to a recent survey, the mobile handset manufacturing industry continues to witness increased demand for smartphones. Around 37% of the sample population already owns a smartphone, while 14.4% plans to buy the product within next 3 months.

The major benefit from this increased demand for smartphones will be felt by industry leaders like Research In Motion (RIMM), Apple (AAPL), Palm (PALM), holding 41%, 25% and 7% market shares respectively. But new Apple and Palm products are a-buzz among the potential customers of new-age smartphones. The data unveils good business prospect for the Apple and Palm in the smartphone segment.

Again, Apple supersedes Palm in smartphone demand, as 44% of the potential smartphone buyers from the sample will buy Apple phones, while the Palm Pre has witnessed a 8% increase in smart phone purchases. The release of the iPhone 3GS, along with price cuts to their basic model have led to a big spike in future demand for Apple. The company continues to take market share with its Macintosh and smartphones.

We expect Apple to trade at a large premium to its peers. But given weak consumer spending for other products and a slowing overall PC market during fiscal 2009, we maintain a Hold rating on Apple. 

Glaxo’s Cervarix Shows Promise

On July 7, GlaxoSmithKline Plc (GSK) announced that data from a large efficacy study showed that Cervarix, its human papillomavirus (HPV) vaccine, is highly effective in protecting against the two most common cervical cancer-causing HPV types, 16 and 18. Cervarix provided 92.9% protection against cervical pre-cancers associated with HPV 16 or 18.

HPV types 16 and 18 account for an estimated 70% of cervical cancer cases and can lead to vulvar and vaginal cancers. The study also showed that Cervarix provides cross-protection against HPV types 31, 33 and 45, which are most likely to lead to cervical cancer after 16 and 18. Results from this study, which was conducted with 18,644 women aged 15-25, were published in The Lancet.

We expect Cervarix to be a significant contributor to the company’s topline over the next several years. Cervarix is already approved in 97 countries across the world, including the European Union [EU]. Cervarix is approved for women between the ages of 10-45, which represents a significant advantage over Merck’s (MRK) Gardasil, approved for ages 11-26.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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According to a recent survey, the mobile handset manufacturing industry continues to witness increased demand for smartphones. Around 37% of the sample population already owns a smartphone, while 14.4% plans to buy the product within next 3 months.

The major benefit from this increased demand for smartphones will be felt by industry leaders like Research In Motion (RIMM), Apple (AAPL) and Palm (PALM), holding 41%, 25% and 7% market shares respectively. But new Apple and Palm products are a-buzz among the potential customers of new-age smartphones. The data unveils good business prospect for the Apple and Palm in the smartphone segment.

Again, Apple supersedes Palm in smartphone demand, as 44% of the potential smartphone buyers from the sample will buy Apple phones, while the Palm Pre has witnessed a 8% increase in smart phone purchases. The release of the iPhone 3GS, along with price cuts to their basic model have led to a big spike in future demand for Apple. The company continues to take market share with its Macintosh and smartphones.

We expect Apple to trade at a large premium to its peers. But given weak consumer spending for other products and a slowing overall PC market during fiscal 2009, we maintain a Hold rating on Apple.

Palm, despite hopes of a rise in demand for smart phone, had earlier struggled to match supply with demand for the new handset. This apart, the Palm brand name no longer commands the same attention it did in its earlier days. Our confidence is low on the long-term prospects of the company, so we reiterate our Sell rating on Palm.

The US Department of Justice (DOJ) has reportedly initiated legal proceedings on the issue (falls under the purview of “Sherman Antitrust Act") to examine if major national carriers, such as AT&T (T), Verizon (VZ) and Sprint Nextel (S) are unduly restricting services through exclusive distribution agreements with manufacturers, especially for high-end cellular handsets.

Exclusive handset agreements with manufacturers for smartphones allow large wireless carriers to sell popular handsets at subsidized prices to lure customers. Currently, most of the leading U.S. carriers have their own long-term distribution arrangements for smartphones.

AT&T has sealed a multi-year distribution deal with Apple Inc (AAPL) for the iPhone while Verizon is the exclusive provider of Research In Motion’s (RIMM) BlackBerry Storm. Additionally, Sprint Nextel recently obtained exclusive rights to market Palm Inc.'s (PALM) Pre smartphone. These carriers have succeeded in accumulating subscribers in recent times driven by these premium handset offerings.

However, small rural wireless operators have appealed to the Federal Communications Commission (FCC) for a ban on such practice as the inability to sell these devices negatively affecting their bottom-line and margins.

These carriers have argued that exclusive smartphone deals have deprived the rural customers in the U.S. from accessing the latest technologies enabled by these state-of-the-art handhelds. In fact, most of the recent subscriber gains achieved by the leading wireless operators came at the expense of their smaller counterparts.

High-end smartphones offer greater contribution to average revenue per user (ARPU) than regular cellular handsets, which encourages larger wireless operators to heavily invest in promotions and improving network and services that support them.

In this scenario, any unfavorable action by the antitrust authority or a potential regulatory overhaul may substantially affect these carriers as they contend with accelerated erosion in legacy landline business. We continue our Hold recommendations for AT&T, Verizon and Sprint Nextel.

Chicago, IL - July 6, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Verizon Wireless (VZ), Research In Motion (RIMM), Sprint (S), Telus (TU) and Apple (AAPL).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Verizon Gets BlackBerry Tour

Verizon Wireless (VZ) has finally confirmed that Research In Motion's (RIMM) BlackBerry Tour 9630, the highly anticipated 3G smartphone device, will hit the stores on July 12. Verizon will sell the Tour for $199.99 after a $70 mail-in rebate with a new two-year customer contract. Currently, customers can pre-order the Tour from Verizon stores. The Tour will enable customers make phone calls and access e-mail and Internet wherever Verizon's data roaming services are available.

Users can easily access voice and data services on networks outside the user's home country, which is preferred by enterprise users. Customers purchasing the BlackBerry through Verizon will be able to use Verizon's CDMA network in the U.S and EDGE/GPRS/GSM networks while in roaming.

The Tour, also known as BlackBerry Niagara, is a sleek and thin smartphone. It features robust functionalities such as push-based mobile solution for e-mail, SMS and MMS capabilities, a HVGA 480 x 360 display, microSD card slot content with up to 16 GB cards, and a full QWERTY keyboard for smooth typing.

The Tour is enabled with Bluetooth 2.0 and GPS, but has no WiFi capabilities. In addition, there is a 3.5mm headphone jack and 3.2-megapixel autofocus camera with geo-tagging and video recording. It supports Verizon's V CAST Music with Rhapsody and VZ Navigator services. The BlackBerry Tour also supports the recently launched BlackBerry App World and is preloaded with Documents to Go for viewing and editing Word, Excel and PowerPoint documents.

Sprint (S) also plans to launch the Tour for $199.99 with a two-year contract, but did not provide any specific release date. In addition, the smartphone will be sold in Canada through Bell Mobility and Telus (TU). RIM's BlackBerry is one of the largest selling smartphones in the market. Tour is expected to be a sure-fire hit due to its differentiating and consumer-friendly features, as well as the low price point. RIM is also expected to gain from the rising demand for smartphones.

Research in Motion has developed a loyal business with previous launches including the BlackBerry Storm (featuring a large touchscreen), BlackBerry Curve 8900 and 8300, BlackBerry Bold, BlackBerry Pearl Flip 8230 and BlackBerry 8830 World Edition smartphones on the Verizon network. The Tour is an updated edition to the BlackBerry 8830 World Edition and a combination of the BlackBerry Curve 8900, Pearl and the Bold. RIM's Tour is expected to be the most successful model launched till date.

Although the Tour is an attractive product, we believe that it will have to compete with the launch of Apple's (AAPL) iPhone 3G S.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Read the full analyst report on "S"
Read the full analyst report on "RIMM"
Read the full analyst report on "VZ"
Read the full analyst report on "NOK"
Read the full analyst report on "TU"
Read the full analyst report on "T"
Read the full analyst report on "PALM"
Read the full analyst report on "AAPL"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/verizon-gets-blackberry-tour-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/nonfarm-payrolls-worsen-in-june-analyst-blog/ http://www.straightstocks.com/stock-watch/nonfarm-payrolls-worsen-in-june-analyst-blog/#comments Thu, 02 Jul 2009 14:28:12 +0000 Charles Rotblut http://www.zacks.com/stock/news/21759/Nonfarm+Payrolls+Worsen+in+June+-+Analyst+Blog U.S. employers cut 467,000 jobs last month, sending the unemployment rate up to 9.5%. This was the first time since January that nonfarm payrolls worsened.

The June drop was also far worse than economists had projected. Offsetting the bad news was a positive revision to May's number, with "just" 322,000 jobs being shed in the month.

Though the June unemployment rate was only fractionally higher than the month previous, it does imply that more than 1 out of every 11 Americans is unemployed. This is a conservative estimate, given that the unemployment rate has been previously criticized for under-counting the number of jobless workers.

This morning's data reinforces what I have said before: the economy is not out of the woods. Though economic conditions are clearly better than they were a few months ago, we remain in the midst of a recession.

Furthermore, once the economic data does finally start showing growth, it won't feel like a recovery to many Americans. Jobs will continue to be shed as CFOs focus more on cash flows than expansion. It's going to be a long, slow recovery.

Given the current backdrop, investors need to start positioning their portfolios for growth while not being overly aggressive. Look at companies that could benefit from the early stages of a recovery, such as International Business Machines (IBM), Research in Motion (RIMM), National Semiconductor (NSM) and Weatherford (WFT). At the same time, balance out the portfolio with more conservative names like Sara Lee (SLE) and Coca-Cola Femsa (KOF).

What you don't want to do is to be overly aggressive and buy companies that still have too much economic risk, such as Nordstrom (JWN), or stocks that have gotten ahead of themselves, like Palm (PALM).
Read the full analyst report on "IBM"
Read the full analyst report on "RIMM"
Read the full analyst report on "NSM"
Read the full analyst report on "WFT"
Read the full analyst report on "SLE"
Read the full analyst report on "KOF"
Read the full analyst report on "JWN"
Read the full analyst report on "PALM"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/nonfarm-payrolls-worsen-in-june-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/zacks-industry-rank-analysis-highlights-seagate-technology-stec-inc-research-in-motion-palm-and-apple-press-releases/ http://www.straightstocks.com/stock-watch/zacks-industry-rank-analysis-highlights-seagate-technology-stec-inc-research-in-motion-palm-and-apple-press-releases/#comments Thu, 02 Jul 2009 12:01:47 +0000 Charles Rotblut http://www.zacks.com/stock/news/21744/Zacks+Industry+Rank+Analysis+Highlights%3A+Seagate+Technology%2C+STEC%2C+Inc.%2C+Research+in+Motion%2C+Palm+and+Apple+-+Press+Releases For Immediate Release

Chicago, IL - July 2, 2009 - Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Seagate Technology (STX), STEC, Inc. (STEC), Research in Motion (RIMM), Palm (PALM) and Apple (AAPL).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This Week: Second-Quarter Earnings Outlook

Though the Nasdaq has been one of the best-performing indexes this year, tech stocks could be poised for further gains in the second half of the year.

In particular, demand for storage devices and smartphones is showing signs of strength. During the past 2 weeks, several brokerage analysts have raised their profit projections on makers of these products.

Storage Device Revenues Higher Than Anticipated

Two storage makers recently raised their quarterly guidance.

Seagate Technology (STX) said last week that both unit demand and pricing were "tracking favorably". As a result, the company expects fiscal fourth-quarter revenues to be in a range of $2.2 to $2.3 billion. Previously, STX had guided for revenues of $1.9 to $2.2 billion.

Gross margins should also be better at approximately 15%.

Ten of the 17 covering analysts promptly raised their projections in response, narrowing the expected loss by 15 cents to 16 cents per share. Expectations for fiscal 2010 were revised as well, with profit of 52 cents now expected.

Strong sales of its ZeusIOPS solid-state drive led STEC, Inc. (STEC) to recently raise its second-quarter guidance. Solid-state drives are faster and use less energy than the hard drives currently used by most computers. Though still more costly, solid-state drives are starting to appear in more high-end laptops.

STEC now expects second-quarter non-GAAP profits to total between 32 and 36 cents per share, versus the previous forecast of 20 to 22 cents per share. Nearly all of the covering brokerage analysts raised their forecasts in response, pushing the consensus earnings estimate up to 32 cents per share. (Full-year projections were also revised, sending the consensus estimate 36 cents higher to $1.08 per share.)

Smartphones Selling Well

The bullish guidance for the hard drive makers came as smartphone makers Research in Motion (RIMM) and Palm (PALM) delivered comparatively good earnings reports.

Though RIMM's fiscal first-quarter results were not well received, the company did beat expectations with profits of 98 cents per share. More importantly, 29 analysts raised their fiscal 2010 projections. The revisions sent the consensus earnings estimate 18 cents higher to $4.11 per share. (One analyst revised his forecast within the past 7 days.)

PALM, one of the year's hottest stocks, saw its shares jump even higher following last week's report. The company generated a fiscal fourth-quarter loss of 40 cents per share, which was 32 cents better than the analysts had projected. PALM's results were aided by the initial shipments of the Pre, though the new phone will have a much greater impact during fiscal 2010.

Following the report, 4 of the 6 covering analysts revised their projections for the current year. The consensus estimate now calls for a loss of 28 cents, 88 cents narrower than the average forecast of a week ago.

Of course, any discussion about smartphones would not be complete without mentioning Apple (AAPL). One million units of the iPhone 3GS were sold during the launch weekend, an impressive number.

Two analysts have since raised their fiscal 2009 forecasts. Though the revisions were not significant enough to move the consensus earnings estimate (36 analysts cover AAPL), they do suggest that the average projection of $5.50 per share could be too conservative.

PALM and STEC are a Zacks #2 Rank ("buy") stocks. AAPL, RIMM and STX are Zacks #3 Rank ("hold") stocks. STX and STEC are classified in Computer-Storage Devices. PALM and RIMM are classified in Telecom Equipment. AAPL is classified in Computer-Micro.

Zacks "Profit from the Pros " e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5611.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5610.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.zacks.com

Storage Device Revenues Higher Than Anticipated

Two storage makers recently raised their quarterly guidance.

Seagate Technology (STX) said last week that both unit demand and pricing were "tracking favorably". As a result, the company expects fiscal fourth-quarter revenues to be in a range of $2.2 to $2.3 billion. Previously, STX had guided for revenues of $1.9 to $2.2 billion.

Gross margins should also be better at approximately 15%.

Ten of the 17 covering analysts promptly raised their projections in response, narrowing the expected loss by 15 cents to 16 cents per share. Expectations for fiscal 2010 were revised as well, with profit of 52 cents now expected.

Strong sales of its ZeusIOPS solid-state drive led STEC, Inc. (STEC) to recently raise its second-quarter guidance. Solid-state drives are faster and use less energy than the hard drives currently used by most computers. Though still more costly, solid-state drives are starting to appear in more high-end laptops.

STEC now expects second-quarter non-GAAP profits to total between 32 and 36 cents per share, versus the previous forecast of 20 to 22 cents per share. Nearly all of the covering brokerage analysts raised their forecasts in response, pushing the consensus earnings estimate up to 32 cents per share. (Full-year projections were also revised, sending the consensus estimate 36 cents higher to $1.08 per share.)

Smartphones Selling Well

The bullish guidance for the hard drive makers came as smartphone makers Research in Motion (RIMM) and Palm (PALM) delivered comparatively good earnings reports.

Though RIMM's fiscal first-quarter results were not well received, the company did beat expectations with profits of 98 cents per share. More importantly, 29 analysts raised their fiscal 2010 projections. The revisions sent the consensus earnings estimate 18 cents higher to $4.11 per share. (One analyst revised his forecast within the past 7 days.)

PALM, one of the year's hottest stocks, saw its shares jump even higher following last week's report. The company generated a fiscal fourth-quarter loss of 40 cents per share, which was 32 cents better than the analysts had projected. PALM's results were aided by the initial shipments of the Pre, though the new phone will have a much greater impact during fiscal 2010.

Following the report, 4 of the 6 covering analysts revised their projections for the current year. The consensus estimate now calls for a loss of 28 cents, 88 cents narrower than the average forecast of a week ago.

Of course, any discussion about smartphones would not be complete without mentioning Apple (AAPL). One million units of the iPhone 3GS were sold during the launch weekend, an impressive number.

Two analysts have since raised their fiscal 2009 forecasts. Though the revisions were not significant enough to move the consensus earnings estimate (36 analysts cover AAPL), they do suggest that the average projection of $5.50 per share could be too conservative.

PALM and STEC are a Zacks #2 Rank ("buy") stocks. AAPL, RIMM and STX are Zacks #3 Rank ("hold") stocks. STX and STEC is classified in Computer-Storage Devices. PALM and RIMM are classified in Telecom Equipment. AAPL is classified in Computer-Micro.

The Zacks Industry Rank List can be viewed at http://www.zacks.com/zrank/zrank_inds.php. This interactive list allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. Shown below is the Zacks Sector Rank List, which shows the trend in estimate revisions on a broader scale.

Sector Rank as of Jul 1
Sector	This Week's Zacks Rank	Last Week's Zacks Rank	FY09 Revisions Ratio	FY09 Estimates Revised Up	FY09 Estimates Revised Down
Retail-Wholesale	2.65	2.57	1.96	325	166
Consumer Staples	2.75	2.78	2.35	190	81
Medical	2.87	2.87	1.11	231	208
Consumer Discretionary	2.92	2.89	1.10	151	137
Business Services	2.93	3.02	1.36	68	50
Computer and Technology	2.94	2.93	1.97	540	274
Oils-Energy	3.01	3.01	0.99	347	350
Utilities	3.03	2.98	0.79	65	82
Industrial Products	3.08	3.16	0.82	89	109
Conglomerates	3.11	3.07	0.77	10	13
Basic Materials	3.12	3.13	0.76	152	199
Finance	3.13	3.17	0.78	450	578
Auto-Tires-Trucks	3.15	3.11	0.38	19	50
Aerospace	3.18	3.08	0.70	16	23
Construction	3.19	3.05	0.57	47	82
Transportation	3.35	3.30	0.33	64	194

Charles Rotblut, CFA, is the senior market analyst for Zacks.com. He can be reached at crotblut@zacks.com.

Zacks Investment Research

Chicago, IL - June 30, 2009 - Zacks Equity Research highlights Research In Motion (RIMM) as the Bull of the Day and Canon (CAJ) the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Electric Power (AEP), General Electric (GE) and First Solar (FSLR).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Research In Motion (RIMM), the manufacturer of BlackBerry'smart-phone devices, continues with robust financial performance in spite of facing a global economic recession and an extremely competitive industry.

The company's first quarter (ended May 30) financial results were above our expectations. Highend Blackberry handsets experienced significant market traction as the company maintains the momentum of net new subscriber additions. Sequential improvement of gross margin is another positive factor.

We expect the smart-phone device market to gain further momentum should economic conditions improve and as demand for portable mobile access remains firm on a global basis.

Bear of the Day:

We believe the sharp appreciation of the yen is eroding Canon's (CAJ) revenue and profits.

Canon's first-quarter 2009 results were mixed with revenue below expectations while earnings slightly exceeding our expectation. The company expects to improve profitability through product launches and cost cutting efforts. As a result CAJ raised its earnings forecast for the full year 2009, still below 2008 level.

We expect revenue in 2009 to be hurt by weak consumer spending and believe the company will struggle to meet expectations in fiscal 2009. We maintain our estimates for the full year 2009.

Latest Posts on the Zacks Analyst Blog:

Who Wins From Cap & Trade?

On Friday, the House narrowly approved the Waxman-Markey bill. This legislation will, for the first time, put a (indirect) price on CO2 emissions.

Most of the permits will be given away at first rather than being auctioned off. This will greatly ease the transition, much to the benefit to coal oriented utilities like American Electric Power (AEP).

The bill will require that by 2020, that 20% of all U.S. electric power come from renewable sources. The means that the Wind Turbine unit should be one of General Electric's (GE) best performing divisions going forward. However, I'm not sure that it will be enough to totally move the needle on a firm the size of GE. Still, GE will get a benefit, and is a fairly conservative way to play it.

More direct plays like First Solar (FSLR) are not exactly cheap, which makes them more risky. However, the potential upside is also huge.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/ZacksInvestment

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com